Imperial Group Pension Trust Ltd v Imperial Tobacco Ltd
[1991] 1 WLR 589
Independent editorial summary โ not the official judgment. Read the full judgment via the source link.
Ratio Decidendi
An employer exercising powers under a pension scheme is subject to an implied duty of good faith โ it must not exercise its powers for an improper purpose or perversely.
Facts
The employer proposed amendments to the pension scheme that would have affected members' benefits. Members challenged the employer's power to make such changes.
Judgment Summary
Browne-Wilkinson VC held that the employer's powers under the scheme are subject to an implied obligation of good faith, analogous to the duty implied in employment contracts.
Key Quotes
"The employer must not exercise its rights under the scheme for an improper purpose or perversely."
โ Browne-Wilkinson VC
Subsequent Treatment
Applied in subsequent pension scheme amendment disputes.
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